Forex Idioms
A “margin call” is essentially a warning to increase the margin and account balance to prevent the account from being stopped. The margin call level for accounts at Unicorn Forex Broker is set at 100% (meaning when the free margin ratio reaches 100). In simpler terms, when the ratio of free margin to used margin for trades becomes equal (due to trades incurring losses), the account enters a state of margin call. In this state, the trader can only close existing trades (which does not guarantee to exit the margin call state) or increase the account balance to exit the margin call state.
For more information on account features, click here.
Leverage is a multiplier provided by the broker that allows traders to enter positions with a higher value than their available balance.
For example, if the leverage is 1:100, it means that for every $1 in your account, you can enter a trade worth $100.
It’s important to note that leverage does not increase the actual balance in the account. Instead, it determines the margin required for a trade. With higher leverage, traders need less margin to enter a trade.
Lower leverage leads to smaller trade sizes and lower risk.
“Requote” means a literal revaluation. It refers to the situation where, for any reason, a broker cannot execute your buy or sell order at the requested price and offers you the opportunity to choose a new price.
Unicorn Forex Broker does not have requotes.
A Stop-Out occurs when the margin level drops to a point where the broker automatically closes trades to prevent further losses, rather than increasing the used margin to cover the losses and exit this state. In this scenario, as trades incur losses and each trade is closed, the loss amount is deducted from the account balance. Consequently, the trader will effectively deplete their capital. Therefore, our strong recommendation is that if your account enters a margin call state, take immediate action to increase your account balance before it reaches the Stop Out level. This will allow you to manage your capital and open trades, exit the crisis state, preserve your capital as much as possible, return the conditions to normal, and resume the trading process smoothly. For information on account conditions, please refer to the link below. https://unfxb.com/trading-accounts-en/
- A “lot” refers to a standardized unit of measurement used for buying and selling various commodities, much like a kilogram of rice or an ounce of saffron, etc. In the forex market, the trading unit is specified as a “lot.” When engaging in a trade, it is essential to determine the volume of a currency pair or commodity, etc., that you intend to trade.
